If Anago accepts the delegation of billing and collections, what monthly accounting fee will Anago charge me?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
chise Rights Agreement immediately deduct from amounts paid to you on your client receipts, any amounts owed us.
- (v) Billing and Collection Procedures Upon Your Request. You may, from time to time, ask us to allow you to delegate your role as your Unit Franchisees' billing and collections agent. If, in our sole discretion, we accept that delegation and assume the processing of client invoices and Unit Franchise statements, we may do so for an indefinite period. We will charge you a monthly accounting fee equal to the greater of $1,000 or 1% of your monthly Gross Revenues, plus the cost of postage. We will also charge you a $25.00 accounting fee per Unit Franchisee monthly state
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 27–36)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, if you request and Anago accepts the delegation of your role as your Unit Franchisees' billing and collections agent, Anago will charge a monthly accounting fee. This fee is the greater of $1,000 or 1% of your monthly Gross Revenues, plus the cost of postage.
In addition to the monthly accounting fee, Anago will also charge a $25.00 accounting fee per Unit Franchisee monthly statement. These accounting fees will be withheld from the amounts due to you in the week the costs for processing were incurred.
It's important to note that Anago's acceptance of this delegation is at their sole discretion and can be for an indefinite period. This means that while you can request this service, Anago is not obligated to provide it, and they can discontinue it at any time. As a prospective franchisee, you should consider the potential impact on your cash flow and profitability if Anago were to discontinue this service.